Will home-owners see a return of cheap mortgage rates?
Banks borrowing rates have reduced and home-owners are waiting for mortgage rates to fall in line with lenders lower costs. Recently 2, 3, 5 and 10 year swap rates fell by up 0.28%.
In light of this is a reduction in UK mortgage rates likely? Many market experts say no, the likelihood is rates will hold steady.
Rates gradually increased through the second quarter in reaction to increased funding costs, and it is unlikely that a fall in swap rates will be enough to reverse the trend.
It is more probable that the majority of UK lenders will use any fall in funding costs to boost their lower profits which will be much to the relief of shareholders.
The general feeling is UK lenders will experience a relatively quiet July and August due to events such as the Olympics. This may be of benefit those looking to buy in the next few weeks as some lenders may choose to boost lending by offering cheaper rates over the summer.
Abbey has already made a small reduction to its mortgage rates by launching a 5 year fix at 3.99% for 60% loan to value and others such as Northern Rock are advising the intention to boost business prior to the market quietening down over summer.
Any rate reductions to increase business over the summer months are not expected to last long, therefore those looking to secure a good deal are advised to act soon and call Deal Direct.
Contact one of our skilled advisers today to secure the best mortgage rates on offer.
